Binh Minh Plastic to auction off 24.16 million shares

Plastics manufacturer Binh Minh Plastic JSC (BMP), which is nearly 50 per cent owned by Thai PVC manufacturer Nawaplastic Industry Co., Ltd., will put 24.16 million shares or 29.51 per cent of its stakes on sale via an auction.

Binh Minh Plastic will offer almost 30 per cent of its stakes to investors

The auction is expected to be organised on March 9 at the Ho Chi Minh City Stock Exchange (HSX). All organisations and individuals satisfying the conditions stipulated by BMP’s regulations on public share auction can join.

The offered shares are owned by State Capital Investment Corporation (SCIC).

Interested investors will need to submit their applications to participate in the auction between February 28 and 4 PM, March 3 to HSX and other agencies.

The minimum share volume to register is 20,000 shares. Investors will have to pay a deposit of 10 per cent of the total value of the subscribed shares based on the starting price.

The initial price is expected to be published on February 28.

Earlier in late September 2017, the State Securities Commission (SSC) approved the plan to lift the foreign ownership limit in BMP to 100 per cent. At the time, analysts believed that Nawaplastic will be a candidate in the race for a controlling stake in BMP.

Nawaplastic announced that it will divest from another large-scale plastic manufacturer, Tien Phong Plastic JSC, to collect capital to acquire more BMP shares. However, to date, no more information about these deals were published.

Nawaplastic announced that it will divest from another large-scale plastic manufacturer, Tien Phong Plastic JSC, to collect capital to acquire more BMP shares. However, to date, no more information about these deals were published.

BMP manufactures and trades civil and industrial products made of plastic and rubber. The company also designs, manufactures, and trades in plastic moulds for the casting industry; produces and trades machinery, materials, and sanitation equipment for the construction industry; provides interior decoration and water supply and drainage services; and offers appraisal, among others.